FIN 615 NPV and IRR calculations Over lunch, you and Cindy meet to discuss next steps with the expansion project. “Do we have everything we need on sales and costs?” you ask. ”It must be time to compute the net present value (NPV) and internal rate of
Fin-Acc-Boss
q____ip4.xlsx
NPV - IRR
| FIN 615 |
| NPV and IRR calculations |
| Cost of Capital | 10.00% |
| Time/yr | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow Input here |
| Discounted CF | 0 | 0 | 0 | 0 | 0 | 0 |
| NPV | 0 | =cf1/((1+n)^1) | =cf2/((1+n)^2) | =cf3/((1+n)^3) | =cf4/((1+n)^4) | =cf5/((1+n)^5) |
| PV factor | | 0.9090909091 | 0.826446281 | 0.7513148009 | 0.6830134554 | 0.6209213231 |
| IRR | ERROR:#NUM! |